Amid Nigeria's $4.7bn Debt, China to Finance Abuja-Kano, Port Harcourt-Maiduguri Rail Projects
- China has dedicated itself to financing 85% of the construction of Nigeria’s railway projects
- Nigeria has paid the remaining 15% through appropriations from the project’s inception
- The Chinese president vowed to strengthen bilateral ties between Nigeria and China
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China has reiterated its commitment to provide 85% of the financing for constructing the Abuja-Kano and Port-Harcourt-Maiduguri railway projects.
Nigeria, which was required to pay the remaining 15%, paid its portion of the cash through appropriations from the project’s inception.
This was contained in a statement signed by special assistant to vice-president Kashim Shettima on media and communications, Stanley Nkwocha, on Wednesday, October 18.
The statement was titled: At 3rd Belt and Road initiative forum: China commits to refinancing, completing Abuja-Kano, Port-Harcourt-Maiduguri railways.
Source: UGC
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China's continued commitment to financing projects in Nigeria comes despite earlier report which revealed Nigeria owes the country $4.7 billion.
The report showed Nigeria also owes the World Bank $14 billion, France $573 million, amongst debt to others.
China is dedicated to more investment
Addressing Shettima at the Peoples Building in China, the Asian country's president, Xi Jinping, promised to enhance investment in Nigeria’s power generation and digital economy.
He pledged to strengthen the Nigeria-China bilateral relationship and called for the security of Chinese people working in Nigeria.
Xi pledged that China would increase political backing and foster collaboration across all sectors. He also commended Nigeria’s adherence to the one-China principle.
The Chinese leader promised support for President Bola Tinubu’s eight-point economic program and his Renewed Hope Manifesto, promising to enhance practical cooperation further.
Chinese to keep up the fight against terrorism
In terms of security, the Chinese President vowed to keep up the fight against terrorism and reaffirmed China’s commitment to regional peace, particularly regarding its long-standing military training and MoUs on joint exercises.
Xi said:
“As President Bola Ahmed Tinubu stated recently at the last United Nations General Assembly, Africa does not need to run away. Africa holds the key to the World.
“We support Nigeria to play key roles in international relations and upholding allies’ commitments. Mr Vice President, you spoke about upscaling and further upgrading our strategic relationship, and I agree with you.
In his remark, Shettima said the rail projects are essential for the Tinubu-led government the Nigerian people.
Shettima asserted that Tinubu was still dedicated to forging closer ties between Nigeria and China.
He said such ties were marked by mutual respect, absence of political meddling, and international cooperation.
Meanwhile, China has not yet released funding for the two significant railway projects in Nigeria since the projects were launched, mainly because of commitments and cuts.
The International Monetary Fund (IMF) earlier warned Nigeria and others to stay away from Chinese loans and source domestic credit.
Full List: Nigeria Owes China $4.7bn, World Bank $14bn, France $573m, Indebted to Others
In an earlier report by Legit.ng, the Debt Management Office (DMO) revealed how much Nigeria is owing other countries and organisations worldwide.
According to the paper detailing Nigeria’s external debt stock as of June 30, 2023, there is N20.79 billion in unpaid multilateral loans.
The sum comprises the N1.55 billion payable to the African Development Bank and the N14 billion owed to the World Bank.
Source: Legit.ng
